NIIF makes first investment, partners with DP World

Speed Post News Network

New Delhi : The National Investment and Infrastructure Fund (NIIF) made its first investment on January 22, 2018. NIIF has partnered with DP World, a leading enabler of global trade to create an investment platform for ports, terminals, transportation and logistics businesses in India.

The platform will invest in opportunities in the ports sector, and beyond sea ports into areas such as river ports and transportation, freight corridors, port-led special economic zones, inland container terminals, and logistics infrastructure including cold storage, according to a PIB relase.

The first close of the NIIF Master Fund took place on October 16, 2017, with contributions from a subsidiary of Abu Dhabi Investment Authority (ADIA) and four Domestic Institutional Investors (DIIs), viz., HDFC Group, ICICI Bank, Kotak Mahindra Life and Axis Bank. The last date for first tranche to be received by a firm is called first close.

Subhash Chandra Garg, Secretary, Department of Economic Affairs (DEA), Ministry of Finance, said, “NIIF, set-up to function as a major platform in India for attracting foreign investments, has made good progress. We are pleased to learn of NIIF’s first investment to create an investment platform in the ports and logistics sector. Following its First Close in October 2017 on the fund-raising side, and now with its first investment, NIIF is making visible progress.’’

The NIIF is being operationalized by establishing three Alternative Investment Funds (AIFs) under the SEBI Regulations. The proposed corpus of NIIF is Rs 40,000 crore (around USD 6 Billion). GOI’s contribution to the AIFs under the NIIF scheme shall be 49% of the total commitment. NIIF has mandate to solicit equity participation from strategic anchor partners, like overseas sovereign/quasi-sovereign/multilateral/bilateral investors.